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How To Get The Best Rates On Health Insurance In Florida
Finding a way to afford health insurance is a problem everywhere, not just here in Florida. Everyone wants to know how to get the best rates on health insurance in Florida.The good news is, Read more...
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Insurance Guide
About Your Insurance
Insurance
is the one thing that we buy that we hope we never need. Insurance by
definition is a form of risk management primarily used to hedge against
the risk of a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange
for a premium.
The Insurer is the company that sells the
insurance. Insurance rate is a factor used to determine the amount,
called the premium, to be charged for a certain amount of insurance
coverage.
Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
2 Main Types of Insurance Companies
Life insurance companies, which sell life insurance, annuities and pensions products.
Non-life or general insurance companies, which sell other types of insurance.
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General insurance companies can be further divided into these sub categories.
Standard Lines & Excess Lines
In
most countries, Life and Non-Life Insurers are subject to different
regulatory, tax and accounting regimes.
Main Diference is the Timing
The
main
reason for the distinction between the two is that
life, annuity, and pension business is very long-term in nature.
Coverage for life assurance or a pension can cover risks over many
decades. By contrast, non-life insurance cover usually covers a |
shorter period, such as one year .In the United States, standard line
insurance companies are your "main stream" insurers. These are the
companies that typically insure your auto, home or business. They use
pattern or "cookie-cutter" policies without variation from one person
to the next. They usually have lower premiums than excess lines and can
sell directly to individuals. They are regulated by state laws that can
restrict the amount they can charge for insurance policies.
Types of insurance
Any
risk that can be quantified can potentially be insured. Specific kinds
of risk that may give rise to claims are known as "perils". An
insurance policy will set out in detail which perils are covered by the
policy and which are not.
Below are a list of the many different
types of insurance that exist. A single policy may cover risks in one
or more of the categories set forth below. For example, auto insurance
would typically cover both property risk (covering the risk of theft or
damage to the car) and liability risk (covering legal claims from
causing an accident).
Homeowner's Insurance
A homeowner's insurance policy in the
U.S. typically includes property insurance covering damage to the home
and the owner's belongings, liability insurance covering certain legal
claims against the owner, and even a small amount of health insurance
for medical expenses of guests who are injured on the owner's property.
Business
insurance can be any kind of insurance that protects businesses against
risks. Some principal subtypes of business insurance are (a) the
various kinds of professional liability insurance, also called
professional indemnity insurance, which are discussed below under that
name; and (b) the business owners policy (BOP), which bundles into one
policy many of the kinds of coverage that a business owner needs, in a
way analogous to how homeowners insurance bundles the coverages that a
homeowner needs.
Life & Annuity Insurance
Life
insurance provides a monetary benefit to a decedent's family or other
designated beneficiary, and may specifically provide for income to an
insured person's family, burial, funeral and other final expenses. Life
insurance policies often allow the option of having the proceeds paid
to the beneficiary either in a lump sum cash payment or an annuity.
Annuities
provide a stream of payments and are generally classified as insurance
because they are issued by insurance companies and regulated as
insurance and require the same kinds of actuarial and investment
management expertise that life insurance requires. Annuities and
pensions that pay a benefit for life are sometimes regarded as
insurance against the possibility that a retiree will outlive his or
her financial resources. In that sense, they are the complement of life
insurance and, from an underwriting perspective, are the mirror image
of life insurance.
Health Coverages
Health
insurance policies will often cover the cost of private medical
treatments if the National Health Service in the UK (NHS) or other
publicly-funded health programs do not pay for them. It will often
result in quicker health care where better facilities are available.
Dental
insurance, like medical insurance, is coverage for individuals to
protect them against dental costs. In the U.S., dental insurance is
often part of an employer's benefits package, along with health
insurance.
Disability Coverages
Disability
insurance policies provide financial support in the event the
policyholder is unable to work because of disabling illness or injury.
It provides monthly support to help pay such obligations as mortgages
and credit cards.
Total permanent disability insurance insurance
provides benefits when a person is permanently disabled and can no
longer work in their profession, often taken as an adjunct to life
insurance.
Disability overhead insurance allows business owners
to cover the overhead expenses of their business while they are unable
to work.
Workers' compensation insurance replaces all or part of
a worker's wages lost and accompanying medical expense incurred because
of a job-related injury.
Property & Casualty Coverage
Property
insurance provides protection against risks to property, such as fire,
theft or weather damage. This includes specialized forms of insurance
such as fire insurance, flood insurance, earthquake insurance, home
insurance, inland marine insurance or boiler insurance.
Casualty insurance insures against accidents, not necessarily tied to any specific property.
Automobile insurance,
known in the UK as motor insurance, is probably the most common form of
insurance and may cover both legal liability claims against the driver
and loss of or damage to the insured's vehicle itself. Throughout the
United States auto insurance policy is required to legally operate a
motor vehicle on public roads. In some jurisdictions, bodily injury
compensation for automobile accident victims has been changed to a
no-fault system, which reduces or eliminates the ability to sue for
compensation but provides automatic eligibility for benefits. Credit
card companies insure against damage on rented cars.
Driving School Insurance
provides cover for any authorized driver whilst under going tuition,
cover also unlike other motor policies provides cover for instructor
liability where both the pupil and driving instructor are both equally
liable in the event of a claim.
Aviation insurance insures against hull, spares, deductible, hull wear and liability risks.
Boiler insurance
(also known as boiler and machinery insurance or equipment breakdown
insurance) insures against accidental physical damage to equipment or
machinery.
Builder's Risk insurance
insures against the risk of physical loss or damage to property during
construction. Builder's risk insurance is typically written on an "all
risk" basis covering damage due to any cause (including the negligence
of the insured) not otherwise expressly excluded.
Crime insurance
is a form of casualty insurance that covers the policyholder against
losses arising from the criminal acts of third parties. For example, a
company can obtain crime insurance to cover losses arising from theft
or embezzlement.
Crop insurance Farmers use crop insurance to reduce or manage various risks
associated with growing crops. Such risks include crop loss or damage
caused by weather, hail, drought, frost damage, insects, or disease,
for instance.
Earthquake
insurance is a form of property insurance that pays the policyholder in
the event of an earthquake that causes damage to the property. Most
ordinary homeowners insurance policies do not cover earthquake damage.
Most earthquake insurance policies feature a high deductible. Rates
depend on location and the probability of an earthquake, as well as the
construction of the home.
A fidelity bond is a form of casualty
insurance that covers policyholders for losses that they incur as a
result of fraudulent acts by specified individuals. It usually insures
a business for losses caused by the dishonest acts of its employees.
Fire insurance: See "Property insurance"
Flood
insurance protects against property loss due to flooding. Many insurers
in the US do not provide flood insurance in some portions of the
country. In response to this, the federal government created the
National Flood Insurance Program which serves as the insurer of last
resort.
Hazard insurance: See "Property insurance".
Home insurance or homeowners insurance: See "Property insurance".
Marine
insurance and marine cargo insurance cover the loss or damage of ships
at sea or on inland waterways, and of the cargo that may be on them.
When the owner of the cargo and the carrier are separate corporations,
marine cargo insurance typically compensates the owner of cargo for
losses sustained from fire, shipwreck, etc., but excludes losses that
can be recovered from the carrier or the carrier's insurance. Many
marine insurance underwriters will include "time element" coverage in
such policies, which extends the indemnity to cover loss of profit and
other business expenses attributable to the delay caused by a covered
loss.
Political risk insurance is a form of casualty insurance
that can be taken out by businesses with operations in countries in
which there is a risk that revolution or other political conditions
will result in a loss.
Surety bond insurance is a three party insurance guaranteeing the performance of the principal.
Terrorism insurance provides protection against any loss or damage caused by terrorist activities.
Volcano insurance is an insurance that covers volcano damage in Hawaii.
Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical cyclones.
Liability Coverage
Liability
insurance is a very broad superset that covers legal claims against the
insured. Many types of insurance include an aspect of liability
coverage. For example, a homeowner's insurance policy will normally
include liability coverage which protects the insured in the event of a
claim brought by someone who slips and falls on the property;
automobile insurance also includes an aspect of liability insurance
that indemnifies against the harm that a crashing car can cause to
others' lives, health, or property. The protection offered by a
liability insurance policy is twofold: a legal defense in the event of
a lawsuit commenced against the policyholder and indemnification
(payment on behalf of the insured) with respect to a settlement or
court verdict. Liability policies typically cover only the negligence
of the insured, and will not apply to results of willful or intentional
acts by the insured.
Environmental liability insurance protects
the insured from bodily injury, property damage and cleanup costs as a
result of the dispersal, release or escape of pollutants.
Errors and omissions insurance: See "Professional liability insurance" under "Liability insurance".
Professional
liability insurance, also called professional indemnity insurance,
protects professional practitioners such as architects, lawyers,
doctors, and accountants against potential negligence claims made by
their patients/clients. Professional liability insurance may take on
different names depending on the profession. For example, professional
liability insurance in reference to the medical profession may be
called malpractice insurance. Notaries public may take out errors and
omissions insurance (E&O). Other potential E&O policyholders
include, for example, real estate brokers, home inspectors, appraisers,
and website developers.
Directors and officers liability
insurance protects an organization (usually a corporation) from costs
associated with litigation resulting from mistakes incurred by
directors and officers for which they are liable. In the industry, it
is usually called "D&O" for short.
Prize indemnity insurance
protects the insured from giving away a large prize at a specific
event. Examples would include offering prizes to contestants who can
make a half-court shot at a basketball game, or a hole-in-one at a golf
tournament.
Credit Coverages
Credit insurance repays some
or all of a loan back when certain things happen to the borrower such
as unemployment, disability, or death. Mortgage insurance is a form of
credit insurance, although the name credit insurance more often is used
to refer to policies that cover other kinds of debt.
Mortgage insurance insures the lender against default by the borrower.
Other Types of Coverage
Defence
Base Act Workers' compensation or DBA Insurance insurance provides
coverage for civilian workers hired by the government to perform
contracts outside the US and Canada. DBA is required for all US
citizens, US residents, US Green Card holders, and all employees or
subcontractors hired on overseas government contracts. Depending on the
country, Foreign Nationals must also be covered under DBA. This
coverage typically includes expenses related to medical treatment and
loss of wages, as well as disability and death benefits.
Expatriate
insurance provides individuals and organizations operating outside of
their home country with protection for automobiles, property, health,
liability and business pursuits.
Financial loss insurance
Protects individuals and companies against various financial risks. For
example, a business might purchase cover to protect it from loss of
sales if a fire in a factory prevented it from carrying out its
business for a time. Insurance might also cover the failure of a
creditor to pay money it owes to the insured. This type of insurance is
frequently referred to as "business interruption insurance." Fidelity
bonds and surety bonds are included in this category, although these
products provide a benefit to a third party (the "obligee") in the
event the insured party (usually referred to as the "obligor") fails to
perform its obligations under a contract with the obligee.
Kidnap and ransom insurance
Locked
funds insurance is a little-known hybrid insurance policy jointly
issued by governments and banks. It is used to protect public funds
from tamper by unauthorized parties. In special cases, a government may
authorize its use in protecting semi-private funds which are liable to
tamper. The terms of this type of insurance are usually very strict.
Therefore it is used only in extreme cases where maximum security of
funds is required.
Nuclear incident insurance
Covers damages
resulting from an incident involving radioactive materials and is
generally arranged at the national level. (For the United States, see
the Price-Anderson Nuclear Industries Indemnity Act.)
Pet Insurance
Insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well.
Pollution
Insurance.
A first-party coverage for contamination of insured property
either by external or on-site sources. Coverage for liability to third
parties arising from contamination of air, water, or land due to the
sudden and accidental release of hazardous materials from the insured
site. The policy usually covers the costs of cleanup and may include
coverage for releases from underground storage tanks. Intentional acts
are specifically excluded.
Purchase Insurance
Is aimed at
providing protection on the products people purchase. Purchase
insurance can cover individual purchase protection, warranties,
guarantees, care plans and even mobile phone insurance. Such insurance
is normally very limited in the scope of problems that are covered by
the policy.
Title Insurance
Provides a guarantee that title to
real property is vested in the purchaser and/or mortgagee, free and
clear of liens or encumbrances. It is usually issued in conjunction
with a search of the public records performed at the time of a real
estate transaction.
Travel insurance is an insurance cover taken
by those who travel abroad, which covers certain losses such as medical
expenses, lost of personal belongings, travel delay, personal
liabilities, etc.
Types of Insurance Financing Vehicles
Protected
Self-Insurance is an alternative risk financing mechanism in which an
organization retains the mathematically calculated cost of risk within
the organization and transfers the catastrophic risk with specific and
aggregate limits to an Insurer so the maximum total cost of the program
is known. A properly designed and underwritten Protected Self-Insurance
Program reduces and stabilizes the cost of insurance and provides
valuable risk management information.
Retrospectively Rated
Insurance is a method of establishing a premium on large commercial
accounts. The final premium is based on the insured's actual loss
experience during the policy term, sometimes subject to a minimum and
maximum premium, with the final premium determined by a formula. Under
this plan, the current year's premium is based partially (or wholly) on
the current year's losses, although the premium adjustments may take
months or years beyond the current year's expiration date. The rating
formula is guaranteed in the insurance contract. Formula: retrospective
premium = converted loss + basic premium × tax multiplier. Numerous
variations of this formula have been developed and are in use.
Fraternal Insurance
Is provided on a cooperative basis by fraternal benefit societies or other social organizations.[9]
Formal Self Iinsurance
Is the deliberate decision to pay for otherwise
insurable losses out of one's own money. This can be done on a formal
basis by establishing a separate fund into which funds are deposited on
a periodic basis, or by simply forgoing the purchase of available
insurance and paying out-of-pocket. Self insurance is usually used to
pay for high-frequency, low-severity losses. Such losses, if covered by
conventional insurance, mean having to pay a premium that includes
loadings for the company's general expenses, cost of putting the policy
on the books, acquisition expenses, premium taxes, and contingencies.
While this is true for all insurance, for small, frequent losses the
transaction costs may exceed the benefit of volatility reduction that
insurance otherwise affords.
No-fault Insurance
Is a type of
insurance policy (typically automobile insurance) where insureds are
indemnified by their own insurer regardless of fault in the incident.
Reinsurance
Is a type of insurance purchased by insurance companies or self-insured
employers to protect against unexpected losses. Financial reinsurance
is a form of reinsurance that is primary used for capital management
rather than to transfer insurance risk.
Stop-loss Insurance
Provides protection against catastrophic or unpredictable losses. It is
purchased by organizations who do not want to assume 100% of the
liability for losses arising from the plans. Under a stop-loss policy,
the insurance company becomes liable for losses that exceed certain
limits called deductibles.
Social Insurance
Can be many things
to many people in many countries. But a summary of its essence is that
it is a collection of insurance coverages (including components of life
insurance, disability income insurance, unemployment insurance, health
insurance, and others), plus retirement savings, that mandates
participation by all citizens. By forcing everyone in society to be a
policyholder and pay premiums, it ensures that everyone can become a
claimant when or if he/she needs to. Along the way this inevitably
becomes related to other concepts such as the justice system and the
welfare state. This is a large, complicated topic that engenders
tremendous debate, which can be further studied in the following
articles (and others):
o Social welfare provision
o Social security
o Social safety net
o National Insurance
o Social Security (United States)
o Social Security debate (United States)
Contained
in this Insurance Awareness Guide there are a
multitude of articles and reports written
especially to give you the latest Insurance
information
available.
The team at awareness-guide.com hope you will find all the answers you
are looking for.
Some of this Insurance Awareness Guide information can also be found on Wikipedia. you are
looking for.
TheTeam@awareness-guide.com
MetLife Review: Prepare to spend hours on forms
Reviewed by Loren from Atlanta, GA on November 23, 2009. Recommend: No.
United Health Care Review: aka OptumHealth Allies
Reviewed by Duke from Atlanta, GA on October 15, 2009. Recommend: No.
CIGNA Review: Pricing roulette
Reviewed by Duke from A on October 15, 2009. Recommend: No.
Delta Dental Insurance Review: Nearly worthless
Reviewed by Duke from Atlanta, GA on October 15, 2009. Recommend: No.
Delta Dental Insurance Review: Delta Dental of Pennsylvania
Reviewed by Temika from Michigan on September 23, 2009. Recommend: No.
MetLife Review: Even their top plan pays only for cleaning
Reviewed by Sir Gareth from Elk River on August 18, 2009. Recommend: No.
MetLife Review: paid for one daughter not other
Reviewed by Pat from Cincinnati, Ohio on June 23, 2009. Recommend: No.
Delta Dental Insurance Review: Delta Care USA - DMO Dental Plan
Reviewed by Cindy from Housoton, TX on April 30, 2009. Recommend: No.
MetLife Review: Metlife refuses to pay claims other than cleanings
Reviewed by BSH from Loveland, CO on March 27, 2009. Recommend: No.
Delta Dental Insurance Review: Stay Away!!
Reviewed by RW from NENC on May 27, 2008. Recommend: No.
Aflac Review: Overall, great plan
Reviewed by truthbknown from Omaha, Nebraska on May 12, 2008. Recommend: Yes.
Delta Dental Insurance Review: Delta
Reviewed by KC from Baltimore on May 9, 2008. Recommend: No.
MetLife Review: Breach of Contract
Reviewed by Carl R from Lexington Parkm MD on March 10, 2008. Recommend: No.
Anthem Blue Cross Blue Shield Review: ANTHEM IS A NIGHTMARE
Reviewed by GENIE from AKRON on March 1, 2008. Recommend: No.
United Health Care Review: AVOID UNITED HEALTHCARE
Reviewed by GENIE from AKRON on March 1, 2008. Recommend: No.
Additional
Resources
Long Term Care Insurance At A Glance
Reason to own a long term care insurance is to offer help when you need to do the daily living activities such as bathing and eating. Or sometimes you need some help and assistance when you have a Read more...
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Florida Car Insurance
Florida drivers have a minimum requirement for automobile insurance, which includes death, or injury for ten thousand dollars, twenty thousand for one accident and only ten thousand for property Read more...
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